Euro area must stand ready to bail out banks, says Liikanen

Euro area governments must stand ready to intervene to recapitalise banks if they are shut out of money markets, Erkki Liikanen, the governor of the Bank of Finland, said on Friday.

During a public hearing at the Finnish Parliament's Commerce Committee, Liikanen said access to finance had become more difficult for European banks as the sovereign debt problems in the region escalated. He went on to say that banks should build up their capital buffers by raising additional capital from private